Financial report illustrating Bogota Financial's profitability improvement.
Bogota Financial has reported a net income of $224,000 in the second quarter, marking a significant recovery from a prior loss. The bank also recorded a 34.7% increase in net interest income, although total assets declined. Delinquent loans rose, but the efficiency ratio improved, showcasing cost-control efforts. The bank plans to focus on expanding its commercial loan and deposit portfolios despite not declaring dividends for the upcoming quarters.
Bogota Financial has announced a return to profitability in the second quarter of 2025, reporting earnings of $0.02 per share (GAAP). The bank’s positive performance for the three-month period ending June 30, 2025, marks a significant turnaround from the previous year, where it faced a net loss of $432,000. The bank achieved a net income of $224,000 for this quarter, highlighting its recovery and financial stability.
Overall, Bogota Financial recorded a promising net income of $955,000 for the first half of 2025, a notable improvement compared to the net loss of $873,000 reported during the same period last year. This favorable outcome can be attributed primarily to a 34.7% increase in net interest income, which rose from $2.7 million in Q2 2024 to $3.7 million in Q2 2025. The bank’s net interest margin also saw an increase, climbing to 1.74% from 1.21% due to effective management of funding expenses.
Despite the positive earnings, Bogota Financial experienced a 5.1% decrease in total assets, bringing the total down to $921.8 million by the end of Q2 2025. The bank’s loan balances also saw a decline of 2.6%, largely due to repayments surpassing new originations, particularly within residential and construction loans. Additionally, total deposits fell by 2.2%, resulting in $628.2 million. This decline affected nearly all categories, although savings accounts managed to record a $4.6 million increase.
In terms of loans, Bogota Financial reported an increase in delinquent loans, which now amount to $20.4 million, equating to 2.94% of total loans. This increase was primarily influenced by a $7.1 million commercial real estate loan. However, non-performing assets remained stable, representing 1.50% of total assets. The efficiency ratio demonstrated improvement, decreasing to 95.7% from 122.3% in Q2 2024, which showcases enhanced cost control measures.
Additional financial progress was noted with the non-interest income showing an increase of 9.4% year-over-year. This rise included a one-time boost from a $543,000 payout linked to a bank-owned life insurance policy. Furthermore, the total liabilities decreased by 6.1%, amounting to $783.4 million, while the Tier 1 capital to average assets ratio was reported at an impressive 15.32%, exceeding required levels and underscoring a robust capital position. The average equity as a percentage of total assets rose to 14.96% as of June 30, 2025.
For the upcoming quarters, Bogota Financial has decided not to declare any dividends and has not provided a formal outlook on future performance. However, management anticipates an increase in loan demand later in 2025 extending into early 2026, particularly in terms of growth in consumer and commercial deposits. The bank aims to focus on expanding its commercial loan and deposit portfolios while navigating the changing market conditions with an emphasis on effective risk management.
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